NAM Projects Manufacturing Job Losses Through 2010

Sept. 3, 2009
Sector expected to begin adding jobs in 2011

The manufacturing sector lost nearly 2 million jobs over a 19-month period ending in July and isn't expected to add employment until 2011, according to the National Association of Manufacturers' annual Labor Day report.

The industry lost 1.96 million jobs between December 2007 and July 2009 primarily due to downturns in consumer durable purchases and housing.

NAM forecasts 65,000 additional job losses in 2010, down from the projected 1.6 million expected by the end of 2009. However, NAM expects production will increase by 6.4% in 2011 and 2012, leading to an employment increase of 399,000 and 426,000, respectively. NAM forecasts 89,000 manufacturing jobs created in 2013, remaining unchanged in 2014.

The industries with the greatest prospects for growth include machinery, fabricated metals, aerospace and other transportation, food and beverage products and chemicals. NAM projects employment will increase by 12% between 2010 and 2014 in these five industries, which accounted for one-half of manufacturing output in 2008.

Much of the growth will come from the chemicals, aerospace and food products industries, where employment is expected to exceed pre-recession levels. The machinery and fabricated metals industries will recover job losses incurred in the 2007 to 2010 period by 2014, according to the report.

Meanwhile, the computer and electronics sectors are expected to see employment declines exceeding 347,000 between 2007 and 2010, with an additional 201,000 job losses in the 2010 to 2014 period. The projected declines are attributed to an average 12.5% year-over-year increase in productivity over the past decade and a half.

NAM points out in the report that the outlook doesn't take into consideration legislative issues, including health-care reform, energy, taxes and regulations.

"There are grounds for optimism, but there is even greater reason for caution," said NAM President John Engler in a prepared statement. "A recovery could stall out or even shift into reverse if Congress and the administration enact policies that increase the burden on businesses and make us less competitive in the global economy."

Popular Sponsored Recommendations

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!